Netflix

[BunsenBurner]

<p>Here is a link to the NY Times article on the Netflix’s current financial fiasco:</p>

<p>[How</a> Netflix Lost 800,000 Members, and Good Will - Yahoo! Finance](<a href=“http://finance.yahoo.com/news/How-Netflix-Lost-800000-nytimes-2771345185.html?x=0]How”>http://finance.yahoo.com/news/How-Netflix-Lost-800000-nytimes-2771345185.html?x=0)</p>

<p>Never underestimate the customers’ emotions!</p>

<p>

Like many other companies built in Silicon Valley, Netflix prides itself on its analytical, data-driven approach to making decisions. But it made a classic business misstep. In its reliance on data and long-term strategy, the company underestimated the unquantifiable emotions of subscribers who still want those little red envelopes, even if they forget to ever watch the DVDs inside.</p>

<p>Mr. Hastings said in an interview last week, his most detailed discussion yet of the bruising period, that he had been guilty of overconfidence and of “moving too quickly.” But he said he still believed — as do nearly all investors and analysts — that Netflix’s future lay not in DVDs but in streaming over the Internet. “We still need to move quickly in streaming,” he said.</p>

<p>Twice in the interview, Mr. Hastings linked the hostility toward Netflix’s price change and proposed breakup to the angry mood of the country, even citing the Tea Party and the Occupy Wall Street movement by name.

</p>

[swimcatsmom]

<p>

Netflix lost 800,000 customers and that certainly hurts … and the other 23,000,000 had an increase in fees of about 60% … the math to me says Netflix is making way more money now than before the price increase.

it would be interesting to know how many of the 23,000,000 switched to just having either DVDs or streaming. Those would be paying less a month than the original price, so that’s a loss. We switched to DVDs only and I know several people who either switched to just DVDs or just streaming.</p>

[TutuTaxi]

<p>We switched to DVDs only, too.</p>

[mathmom]

<p>We swtiched to DVDs only and reduced the number of DVDs, which we’d been meaning to do for a while, but the change actually got us to do it. We’ll probably go to streaming eventually, but currently the things we watch streaming aren’t available at Netflix and the movies I want to see at Netflix often aren’t available for streaming.</p>